SHANGHAI, CHINA – NOVEMBER 05: People visit Organ’s booth during the 7th China International Import Expo (CIIE) at the National Exhibition and Convention Center (Shanghai) on November 5, 2024 in Shanghai, China. The 7th China International Import Expo (CIIE) opened in Shanghai on November 5. (Photo by Tang Yanjun/China News Service/VCG via Getty Images)
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Sun Pharmaceutical Industries of India Will acquire New Jersey-based Organon & Co. in an all-cash deal that values ​​the US company at $11.75 billion, including debt.
Indian generic drug maker to acquire all outstanding shares of the company organ for $14 each, according to exchange filings on Monday. Sun Pharmaceutical.
“After a comprehensive review of strategic alternatives, our board determined that this all-cash transaction provides attractive and immediate value to Organon’s shareholders,” said Cary Cox, Executive Chairman of Organon, in the joint statement.
organWhich was spun off from Merck in 2021, specializes in women’s health and biosimilars and has more than 70 products that are sold in 140 countries.
According to the press statement, the acquisition will help Sun Pharma, India’s largest drugmaker, join the top 25 global pharmaceutical companies with revenues of $12.4 billion.
“This transaction is a logical next step towards strengthening Sun Pharma’s global business,” said Kirti Ganorkar, Managing Director, Sun Pharma. The purchase of Organon will help the Indian company to expand its pharmaceutical products, as the US is a major market.
The purchase of Organon is part of Sun Pharmaceutical’s strategy to “grow innovative medicines business”, the Indian company said in a statement. According to the European Medicines Agency, a novel medicine contains an active substance or a combination of active substances that has not been previously authorized.
Sun Pharma’s innovative medicines products currently cover dermatology, ophthalmology and onco-dermatology.
In the financial year ending March 2025, Sun Pharma’s Innovative Medicines segment It accounted for 20% of total salesBut according to the statement, with the acquisition, it will contribute 27% to the topline.
“Organon’s portfolio, capabilities and global reach are highly complementary to ours,” Dilip Shanghvi, executive chairman, Sun Pharma, said in the release.
Organon’s key markets are the US, Europe, China, Canada and Brazil, supported by six manufacturing facilities in the EU and emerging markets.
Shares of Organon were up nearly 31% on Friday, while Sun Pharma closed 3.6% lower.
